Rosita Purchased 500 Shares of a Stock for $25 a Share

question 67

Multiple Choice

Rosita purchased 500 shares of a stock for $25 a share. Today, the stock is selling for $30 a share. The initial margin requirement is 65% and the maintenance margin is 30%. Rosita had to pay ________ in cash to purchase the stock and must have at least ________ in equity today.

• A)$4,500; $3,690
• B)$4,500; $4,500
• C)$4,500; $8,125
• D)$8,125; $3,690
• E)$8,125; $4,500

---

Definitions:

Queue Length

The number of items or people waiting in a line to be processed or serviced.

FCFS

"First Come, First Served," a principle of service priority in which requests are processed in the order that they are received.

Arrival Rate

In queue theory, it refers to the average number of units (e.g., people, objects, or data packets) arriving at a system or facility per time unit.

Service Rate

The speed at which a system can process or handle service requests, often used in the context of queueing theory.